You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now 0 1 to 10 After-Tax CF -$ 24 $ 10 The project's beta is 1.8. Assuming rf = 4% and E(r) = 14% Required: a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Net present value $ 5.59 million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now 0 1 to 10 After-Tax CF -$ 24 $ 10 The project's beta is 1.8. Assuming rf = 4% and E(r) = 14% Required: a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Net present value $ 5.59 million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

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Description: Pls help correctly fast You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millionsof dollars):Years from NowӨ1 to 10After Tax CF-$ 24$ 10The project's beta is 1.8. Assuming

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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